joel-greenblatt

What problem does it solve?

This Skill helps you turn Joel Greenblatt’s value investing philosophy into a clear, repeatable framework for finding quality businesses trading at attractive prices, building portfolios with disciplined rebalancing instead of emotion.

Core Features & Use Cases

• Magic Formula Investing: Quantitatively screen and rank stocks using Return on Capital (ROC) and Earnings Yield (EY), then construct a diversified basket (typically 20–30) for a 1-year cycle.
• Special Situations (“Easy Game”) Lens: Evaluate opportunities like spinoffs, merger arbitrage, restructurings, liquidations, and stub stocks where mispricing is more likely.
• Dynamic Margin of Safety: Distinguish “cigar butt” cheapness from quality + growth where intrinsic value may expand over time, improving safety as time passes.

Quick Start

Ask: “Using Greenblatt’s framework, explain how to run the Magic Formula on my stock universe and outline how you would build a 20-stock portfolio with a 1-year rebalance cycle.”